Union Interim Budget 2024: Sitharaman raises infrastructure spending by 11%
What's the story
Union Finance Minister Nirmala Sitharaman on Thursday presented the Union Interim Budget 2024-25 in the Parliament. Among other developments, she announced that the central government will boost the spending on infrastructure by 11.1% in the upcoming financial year. This means the outlay will be increased to Rs. 11.11 lakh crore, which accounts for 3.4% of the country's gross domestic product (GDP).
Twitter Post
Sitharaman says infra outlay increased for FY2025
The outlay for infrastructure has been increased to Rs 11.11 lakh crores in FY25, says FM Sitharaman. pic.twitter.com/DKZkyDY3kS
— ANI (@ANI) February 1, 2024
Sitharaman's budget speech
Importance of strengthening infra for developing India
Announcing the increased outlay, Sitharaman highlighted the importance of boosting the infrastructure to develop the country. Reportedly, the central government tripled the spending on infrastructure in the last four years, which helped boost the economy and employment. The government led by Prime Minister Narendra Modi, expected to return to power this year, is set to prioritize infrastructure across transport, ports, tourism, and power sectors.
Twitter Post
MP Shardaben Patel tweets about boosting infra outlay
Building on the massive tripling of the infra budget outlay in the past 4 years resulting in a huge multiplier impact on growth and employment, the outlay for the next year is being increased by 11.1% to Rs 11,11,111 crore.
— Shardaben Patel (@ShardabenPatel) February 1, 2024
This would be 3.4% of our GDP.
- FM Smt. @nsitharaman pic.twitter.com/hlzyTZytu6
On fiscal deficit
Infrastructure being developed in record time: FM
Sitharaman said, "All forms of infrastructure, digital, social, and physical, are being built in record time." Separately, the finance minister announced the government's fiscal deficit target for FY2025 was 5.1%. Moreover, India's fiscal deficit for the current financial year (FY24) was revised from 5.9% (last budget's estimate) to 5.8%. To note, fiscal deficit represents the gap between the revenue and spending of the government.
Expert's say
Infrastructure has to be key focus: Expert
Ajit Mangrulkar, director general of IMC Chamber Of Commerce And Industry, told ANI, "Infrastructure has to be the key focus." "India has been lagging in infrastructure...in the last couple of years, we have seen that this government has put in a lot," he added. "Infrastructure creates so many other opportunities... It's for the betterment of the country, and it's an all-round growth," said Mangrulkar.